Dubai gold price firms up to Dh499.75 on strong bets for a December Fed rate cut

Dubai: Dubai’s gold prices moved higher on Wednesday morning, with the 24K rate reaching Dh499.75 after several sessions of tight, range-bound trading. The 22K category also firmed to Dh462.75. The shift reflects renewed momentum in global bullion markets as traders raise expectations of an interest-rate cut at the US Federal Reserve’s December meeting. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The month has been defined by one of the tightest trading bands seen this year. Prices briefly touched Dh504.75 for 24K on November 12 before easing on softer global cues. The monthly low came on November 4, when 24K fell to Dh475.25 following a retreat from October’s record levels.

Global bullion held near $4,165 an ounce in Asian hours. The metal ended Tuesday almost unchanged, although a second day of dollar weakness supported fresh buying. A softer US currency typically makes gold more affordable for overseas holders.

Expectations of a December rate cut picked up after delayed economic data showed the US consumer picture losing momentum. Retail sales in September rose only modestly, while consumer confidence posted its sharpest decline since April.

Reinforcing that shift, the likely frontrunner to be the next Fed chair, White House National Economic Council Director Kevin Hassett, is widely seen as aligned with President Donald Trump’s preference for lower borrowing costs.

Gold often gains when rates fall, since it carries no yield. The metal has now consolidated well above the $4,000 mark after retreating from last month’s peak above $4,380 an ounce.

Despite the recent cooling, gold remains on track for its strongest annual showing since 1979. Prices have risen more than 55% this year, supported by central-bank buying and sustained retail demand driven by what many investors describe as the “debasement trade,” where capital shifts away from sovereign bonds and currencies into hard assets.